$10-billion refinery pitched to process oilsands crude on B.C. coast

B.C. Premier Christy Clark is recusing herself from government decisions on oil refineries, after her ex-husband was hired as a senior executive at one of the proposed projects.

Photograph by: THE CANADIAN PRESS
, Jonathan Hayward

VICTORIA — Premier Christy Clark is recusing herself from all government decisions on oil refineries after her ex-husband was hired as a senior executive at one of the proposed projects.

Clark said she will not participate in cabinet discussions or decisions involving potential oil refineries because her former partner, Mark Marissen, has been named executive vice-president of communications and research at Pacific Future Energy Corporation.

Pacific Future Energy announced Tuesday a $10-billion proposal to build "the world's greenest refinery" on B.C.'s north coast, near Prince Rupert, which would refine raw bitumen into gasoline, diesel and kerosene, in partnership with First Nations communities.

"Out of an abundance of caution I've decided to take action today to ensure that there is no conflict, whether that is perceived or real," Clark told reporters.

The premier said she sought guidance from B.C. Conflict of Interest Commissioner Paul Fraser last week after hearing about her ex-husband's involvement.

Clark and Marissen separated around 2009, and later divorced, but retain joint custody of their son Hamish.

Ethics expert Eike-Henner Kluge said Clark made the right decision.

"I don't know who gave her advice but it's very good," said Kluge, a professor at the University of Victoria. He said the couple's son is a "hub of a possible conflict of interest" because his financial well-being through his father's side will depend on the success of the project and could lead to the perception of influencing the premier's decisions.

Opposition NDP critic Mike Farnworth agreed Clark made the right move, and that as premier she's held to a higher standard than other MLAs who may not have to worry about the business dealings of former partners.

Ex-spouses of MLAs are not specifically covered under B.C.'s Conflict of Interest Act.

The act requires MLAs to proactively disclose their financial holdings, as well as those of their current spouse. According to the law, a conflict exists when any duty of public office leads to "the opportunity to further his or her private interest."

However, the act also describes an "apparent conflict of interest" in which a "reasonably well informed person" would conclude an MLA's official duties led to personal benefit.

Previous rulings by conflict commissioners have also advised MLAs to recuse themselves "out of an abundance of caution" to avoid potential criticism.

"Anyone who has an ex-spouse knows that your ex has the right to manage their life and their career as they see fit, and I certainly have no business ties or financial ties with my ex-husband but we do have a child together and we share that responsibility," said Clark.

Clark said she has documented her decision with the conflict commissioner and delegated her responsibilities on oil refineries to Finance Minister Mike de Jong.

The B.C. government and Clark's cabinet would be required to put any proposed oil refinery through a permitting process, including an environmental review. Overall approval would likely be a federal government decision, said Clark.

Newspaper businessman David Black has also proposed a $16-billion oil refinery in Kitimat, which would process crude oil for shipment overseas.

Pacific Future Energy said it is working on a "pre-feasibility study" of its plan over the next nine to 12 months.

Both projects would eventually require some pipeline, rail or other method to transfer bitumen from Alberta's oilsands to B.C.'s coast.

A 1,200-kilometre Northern Gateway pipeline proposed by Enbridge is currently before the federal cabinet, with a decision on whether to approve or reject the project expected in the next week.

Environmental groups have raised concerns about the risk of an oil spill from tankers that would transport diluted bitumen off B.C.'s coast to overseas markets.

Proponents of refineries have said that refining bitumen before shipment lowers the environmental risk of an ocean oil spill because refined gasoline and diesel products would float on the ocean and partially evaporate.

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